Government and Not For Profit Accounting: Concepts and Practices, 6th Edition

GLOSSARY

2a7-like investment pool A government external investment pool that operates similarly to investment companies subject to the Security and Exchange Commission's Rule 2a7 of the Investment Company Act of 1940. These companies invest in securities, such as Treasury bills, notes, and certificates of deposit, that are both safe and have short-maturities—typically sixty days or less—and hence are not subject to major price swings.

A

ABC See activity-based costing.

accountability The cornerstone of financial reporting; requires governments to answer to its citizens and provide a “right to know” for public information.

account group An accounting entity with a set of accounts that is self-balancing and is used to account for a government's general fixed assets or general long-term obligations. Account groups are distinguished from funds in that they are not used to account for sources, uses, and balances of expendable available financial resources. Account groups were an integral part of the “old” accounting model; they are no longer needed under the model prescribed by GASB Statement No. 34.

accrual basis A method of accounting that recognizes revenues when earned and expenses when incurred regardless of when cash is received or paid.

accrued expenses Expenses that have been incurred and recorded, but have not yet been paid.

accrued revenue Revenue that has been earned and recorded, but not yet received.

activity A line of work contributing to a function or program.

activity-based ...